The market’s main indexes are climbing back above key points, after posting losses in September. The S&P 500 has climbed back above 3,400, the Dow Jones is back above 28,000, and the NASDAQ is over 11,300. Since the indexes hit bottom on September 23, trading has been volatile- but trending upwards.By appearances, the market has corrected itself, and looks to be returning to the bullish tendency it showed through the summer. The September jobs report showed that the economy continues to recover, albeit at a slowing pace, from the coronavirus-inspired downturn of the spring. President Trump’s COVID diagnosis threw investors for a day, but his return to the White House and his path to recovery offer a calming effect.In all, it has investors looking to buy back in. And for those investors who are still nervous, Wall Street’s analysts have picked out stocks with plenty of momentum propelling them forward. Each is up at least 30% year-to-date, and has a Perfect 10 from the Smart Score. The Smart Score is a data analysis tool, which uses the real-time information collected in the database. The stock data is collated according to 8 separate factors, each of which is known to predict growth and share appreciation. The factors are averaged together, and given as a single-digit score, on a scale from 1 to 10, letting investors know at a glance the likely way forward for a stock.And a perfect Smart Score, a 10, is a signal that investors should pay attention to. Here are the details on three such stocks, along with corroborative commentary from the analysts.ANGI Homeservices (ANGI)First up is a tech company in the internet services niche. ANGI Homeservices owns a range of online services brands, mostly in the home improvement realm, including HomeAdvisor, HomeStars, and MyBuilder. The company’s brands operate in the US and Europe, and bring in well over $1 billion in annual revenue.With the social lockdowns put in place to combat corona, homeowners are turning in greater number to do-it-yourself resources. ANGI’s revenue reflects this – the company’s top line has grown from $321 million 4Q19 to $343 million in 1Q20 to $375 million in 2Q20. Earnings, which had dipped negative in the first quarter, turned back positive in Q2. The 2-cent EPS reported beat the 1-cent loss expected by 300%. For the third quarter, projections are a 2 cent per share profit.The stock’s price appreciation has also borne out the company’s strong position. ANGI is up 50% this year, and has fully erased any losses seen during the mid-winter turndown.Jake Fuller, 5-star analyst with BTIG, writes of ANGI: “Results were strong and we model ongoing elevated revenue levels but there simply wasn’t much room for anything less than a beat-and-raise for the pandemic ‘winners’ like ANGI. The stock reaction notwithstanding, we don’t see anything broken here.”Considering these comments, Fuller rates the stock a Buy, with a $19 price target to indicate a potential 49% upside for the coming year. (To watch Fuller’s track record, click here)Overall, the analyst consensus on ANGI is a Strong Buy. The stock’s 12 reviews include 11 Buys and 1 Hold. ANGI trades for $12.74, and the $16.80 average price target implies a 32% one-year upside to the stock. (See ANGI stock analysis on TipRanks)PayPal Holdings (PYPL)Next on the list is PayPal, which has become instantly recognizable and the market leader in online payment services. PayPal saw $17.77 billion in revenue last year, with a net income of $2.46 billion. High and growing revenue has attracted investment cash, and PayPal boasts a market cap of nearly $228 billion.Despite everything that has hit the markets this year, 2020 is turning out to be a great year for the company. Q1 revenue and EPS dipped, but not deeply, and both turned back upwards in Q2. The second quarter top line was $5.26 billion, with earnings of 76 cents per share, the highest in more than two years. Share prices are up, as well, with PYPL gaining an impressive 80% year-to-date. Generally rising volumes of online sales, and the concomitant need for digital payment services, provide a continuing boost for PayPal’s income and share position.Deutsche Bank analyst Bryan Keane put a $234 price target on PYPL, suggesting a 20% one-year upside, and rates the stock a Buy. (To watch Keane’s track record, click here.)Backing his stance, the 5-star analyst writes, “PYPL should be able to offset any moderation in online spend and accelerate growth by monetizing new users, driving higher engagement and benefitting from deals ramping… In addition, existing daily actives are up 40% Y/Y… Although the influx of new users is initially dilutive to engagement overall, the new users are more engaged than ever before and should flow through the engagement waterfall faster driving accelerating engagement metrics in FY21 and beyond keeping growth strong even as net adds potentially moderate.” Overall, the Strong Buy consensus rating on PayPal is based on 32 reviews, including 27 Buys and 5 Holds. The shares are selling for $194.61, and have an average price target of $220.27. The shares’ recent appreciation has pushed them close to that target, leaving a 13% one-year upside potential. (See PayPal’s stock analysis at TipRanks)Darling Ingredients (DAR)Darling Ingredients, the third company on our “perfect 10” list, occupies a unique niche in the food industry. The company focuses on recycling, collecting the by-products of animal processing along with used restaurant oils and grease and manufacturing them into tallow, usable yellow grease, and meat and bone meals. Darling sells these products in the US and abroad.In the second quarter, DAR beat the earnings forecast, showing 39 cents EPS against an estimate of 37 cents. More importantly, this represents a 143% year-over-year gain. Revenues through the first half of year have been stable, at or near $850 million, and in-line with the 2H19 figures. DAR has beaten earnings forecasts in three of the past four quarters.The shares have outperformed, as well. DAR is up 41% this year, and the stock’s trajectory shows no sign of stopping. Its recovery from the market collapse of mid-winter has been real and sustained.Writing from Stephens, analyst Ben Bienvenu writes, “…we believe the business is on the verge of a significant inflection in earnings potential… and the company’s vertically integrated model provides it with an unmatched position in the industry. We have high conviction that shares are substantially undervalued as the market under-appreciates this inflection. Further, we think the company should be a core holding for investors looking for Environmental, Social and Governance (ESG) investments…”Bienvenu’s comments support his Overweight (i.e. Buy) rating, while his $54 price target implies an upside of 36%. (To watch Bienvenu’s track record, click here)With 6 recent reviews, including 4 Buy and 2 Hold, Darling gets a Moderate Buy rating from the analyst consensus. The $42.40 average price target suggests it has room for 7% one-year growth from the current share price of $39.71. (See Darling’s stock analysis at TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.,
The market’s main indexes are climbing back above key points, after posting losses in September. The S&P 500 has climbed back above 3,400, the Dow Jones is back above 28,000, and the NASDAQ is over 11,300. Since the indexes hit bottom on September 23, trading has been volatile- but trending upwards.By appearances, the market has corrected itself, and looks to be returning to the bullish tendency it showed through the summer. The September jobs report showed that the economy continues to recover, albeit at a slowing pace, from the coronavirus-inspired downturn of the spring. President Trump’s COVID diagnosis threw investors for a day, but his return to the White House and his path to recovery offer a calming effect.In all, it has investors looking to buy back in. And for those investors who are still nervous, Wall Street’s analysts have picked out stocks with plenty of momentum propelling them forward. Each is up at least 30% year-to-date, and has a Perfect 10 from the Smart Score. The Smart Score is a data analysis tool, which uses the real-time information collected in the database. The stock data is collated according to 8 separate factors, each of which is known to predict growth and share appreciation. The factors are averaged together, and given as a single-digit score, on a scale from 1 to 10, letting investors know at a glance the likely way forward for a stock.And a perfect Smart Score, a 10, is a signal that investors should pay attention to. Here are the details on three such stocks, along with corroborative commentary from the analysts.ANGI Homeservices (ANGI)First up is a tech company in the internet services niche. ANGI Homeservices owns a range of online services brands, mostly in the home improvement realm, including HomeAdvisor, HomeStars, and MyBuilder. The company’s brands operate in the US and Europe, and bring in well over $1 billion in annual revenue.With the social lockdowns put in place to combat corona, homeowners are turning in greater number to do-it-yourself resources. ANGI’s revenue reflects this – the company’s top line has grown from $321 million 4Q19 to $343 million in 1Q20 to $375 million in 2Q20. Earnings, which had dipped negative in the first quarter, turned back positive in Q2. The 2-cent EPS reported beat the 1-cent loss expected by 300%. For the third quarter, projections are a 2 cent per share profit.The stock’s price appreciation has also borne out the company’s strong position. ANGI is up 50% this year, and has fully erased any losses seen during the mid-winter turndown.Jake Fuller, 5-star analyst with BTIG, writes of ANGI: “Results were strong and we model ongoing elevated revenue levels but there simply wasn’t much room for anything less than a beat-and-raise for the pandemic ‘winners’ like ANGI. The stock reaction notwithstanding, we don’t see anything broken here.”Considering these comments, Fuller rates the stock a Buy, with a $19 price target to indicate a potential 49% upside for the coming year. (To watch Fuller’s track record, click here)Overall, the analyst consensus on ANGI is a Strong Buy. The stock’s 12 reviews include 11 Buys and 1 Hold. ANGI trades for $12.74, and the $16.80 average price target implies a 32% one-year upside to the stock. (See ANGI stock analysis on TipRanks)PayPal Holdings (PYPL)Next on the list is PayPal, which has become instantly recognizable and the market leader in online payment services. PayPal saw $17.77 billion in revenue last year, with a net income of $2.46 billion. High and growing revenue has attracted investment cash, and PayPal boasts a market cap of nearly $228 billion.Despite everything that has hit the markets this year, 2020 is turning out to be a great year for the company. Q1 revenue and EPS dipped, but not deeply, and both turned back upwards in Q2. The second quarter top line was $5.26 billion, with earnings of 76 cents per share, the highest in more than two years. Share prices are up, as well, with PYPL gaining an impressive 80% year-to-date. Generally rising volumes of online sales, and the concomitant need for digital payment services, provide a continuing boost for PayPal’s income and share position.Deutsche Bank analyst Bryan Keane put a $234 price target on PYPL, suggesting a 20% one-year upside, and rates the stock a Buy. (To watch Keane’s track record, click here.)Backing his stance, the 5-star analyst writes, “PYPL should be able to offset any moderation in online spend and accelerate growth by monetizing new users, driving higher engagement and benefitting from deals ramping… In addition, existing daily actives are up 40% Y/Y… Although the influx of new users is initially dilutive to engagement overall, the new users are more engaged than ever before and should flow through the engagement waterfall faster driving accelerating engagement metrics in FY21 and beyond keeping growth strong even as net adds potentially moderate.” Overall, the Strong Buy consensus rating on PayPal is based on 32 reviews, including 27 Buys and 5 Holds. The shares are selling for $194.61, and have an average price target of $220.27. The shares’ recent appreciation has pushed them close to that target, leaving a 13% one-year upside potential. (See PayPal’s stock analysis at TipRanks)Darling Ingredients (DAR)Darling Ingredients, the third company on our “perfect 10” list, occupies a unique niche in the food industry. The company focuses on recycling, collecting the by-products of animal processing along with used restaurant oils and grease and manufacturing them into tallow, usable yellow grease, and meat and bone meals. Darling sells these products in the US and abroad.In the second quarter, DAR beat the earnings forecast, showing 39 cents EPS against an estimate of 37 cents. More importantly, this represents a 143% year-over-year gain. Revenues through the first half of year have been stable, at or near $850 million, and in-line with the 2H19 figures. DAR has beaten earnings forecasts in three of the past four quarters.The shares have outperformed, as well. DAR is up 41% this year, and the stock’s trajectory shows no sign of stopping. Its recovery from the market collapse of mid-winter has been real and sustained.Writing from Stephens, analyst Ben Bienvenu writes, “…we believe the business is on the verge of a significant inflection in earnings potential… and the company’s vertically integrated model provides it with an unmatched position in the industry. We have high conviction that shares are substantially undervalued as the market under-appreciates this inflection. Further, we think the company should be a core holding for investors looking for Environmental, Social and Governance (ESG) investments…”Bienvenu’s comments support his Overweight (i.e. Buy) rating, while his $54 price target implies an upside of 36%. (To watch Bienvenu’s track record, click here)With 6 recent reviews, including 4 Buy and 2 Hold, Darling gets a Moderate Buy rating from the analyst consensus. The $42.40 average price target suggests it has room for 7% one-year growth from the current share price of $39.71. (See Darling’s stock analysis at TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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